The creation of an independent arbitration unit for the Students' Union date back to 1992. A few letters between the chairperson of Executive Committee, Union Council and the 1st Chief Arbitrator shows that it has been believing that a separation of arbitration function would benefit the Union in terms of fairness and justice.

The first case heard by the committee came soon in December 1992, during the period while City Polytechnic of Hong Kong moved into the current permanent campus from Mong Kok.